16 Jun 2014
GBP/USD backs away from 5-year high
FXStreet (Córdoba) - The GBP/USD pulled back from a fresh 5-year high and slipped back below 1.7000 as USD demand prevails amid cautious market sentiment.
The GBP/USD reached a high of 1.7011 at the beginning of the European session, last seen Aug 5 2009, with the pound still underpinned by BoE’s Carney comments last week. Last Thursday, Carney said interest rates in the UK could rise sooner than investors expect, a clear signal the BoE is gearing up for its first hike after 5 years of record low rates.
The GBP/USD however faced strong pressure and slid to the 1.6970 area, erasing completely intraday gains. At time of writing, the Cable is trading at 1.6975, virtually unchanged on the day.
GBP/USD technical levels
In terms of technical levels, if the GBP/USD breaks above 1.7011 (Jun 16 high), next resistances line up at 1.7041 (Aug 5 2009 high) and not much till 1.7100 (psychological level). On the other hand, supports are seen at 1.6920 (Jun 13 low), 1.6900 (psychological level) and 1.6859 (intraday level Jun 12).
The GBP/USD reached a high of 1.7011 at the beginning of the European session, last seen Aug 5 2009, with the pound still underpinned by BoE’s Carney comments last week. Last Thursday, Carney said interest rates in the UK could rise sooner than investors expect, a clear signal the BoE is gearing up for its first hike after 5 years of record low rates.
The GBP/USD however faced strong pressure and slid to the 1.6970 area, erasing completely intraday gains. At time of writing, the Cable is trading at 1.6975, virtually unchanged on the day.
GBP/USD technical levels
In terms of technical levels, if the GBP/USD breaks above 1.7011 (Jun 16 high), next resistances line up at 1.7041 (Aug 5 2009 high) and not much till 1.7100 (psychological level). On the other hand, supports are seen at 1.6920 (Jun 13 low), 1.6900 (psychological level) and 1.6859 (intraday level Jun 12).